Investors were tuned in earlier this morning, as the Labor Department reported that the U.S. Economy added 943,000 jobs in July, exceeding expectations of 845,000 new jobs for last month. The unemployment rate dropped to 5.4%. The positive data helped boost stocks in early trading. So far for the week, the Dow is up 0.4%, the S&P 500 is up 0.77%, and the Nasdaq is up 1.5%.
Some of the most successful names of our time began as speculative small-caps. Amazon was a $7 stock in 1998, and Tesla had a market valuation of just $1 billion in 2010. Of course, not every small-cap company becomes a giant. The truth is, some of today’s burgeoning small-cap names could cease to exist down the line.
Investing in small caps can be highly rewarding but also comes with risks that need to be considered. If you’re interested in adding small-caps to your portfolio but want to cut back on the risk, investing in ETFs can reduce the volatility associated with individual companies while adding an important layer of diversification to your portfolio because they provide exposure to a variety of stocks.
In today’s trade, we’ll highlight one small-cap growth fund that facilitates investment in what could be the mega-caps of tomorrow.
Palm Beach Group:
Teeka: “Buy this Ticker ASAP” – DONT USE.
With experts projecting gains as high as 1,530% by the end of this year… Anyone who doesn’t buy this ticker will most likely regret it later. Even Forbes has confirmed that when all is said and done, “a new class of millionaires may emerge.” Unfortunately, a recent study shows that only 3% of retirees have invested in this opportunity. That means most people will miss out. Don’t be one of them. Click here and get the ticker now… no strings attached. [REVEAL TICKER]
Vanguard Small-Cap Growth ETF (VBK)
This fund leans toward the companies that aspire to become the next generation of stock market leaders. Investors who buy VBK can potentially get in on the ground floor of the next industry leader.
The investment thesis behind small caps is that these firms are likely to provide strong growth prospects to a portfolio and should have a much easier time growing than their large-cap counterparts. However, these securities are highly volatile and can experience significant losses or gains in a very short period of time. Despite their uncertainty, these stocks add an important aspect to a well-rounded portfolio. They tend to move somewhat independently of large caps and can be a better ‘pure play’ on the American economy.
VBK does an excellent job of dividing up assets as the fund holds more than 600 securities in total and doesn’t give anyone security more than 0.6% of the total assets. Thanks to this high level of diversification and VBK’s ultra-low expense ratio, the fund could make a superb addition to portfolios of investors looking for small caps but seeking a higher risk/reward profile in the space.
Rare 19¢ trade for 5,100%-DO NOT USE.
Penny Trades” are cheap and explosive… Warren Buffett grabbed 46 million of them for 1¢ a pop. Right now, he’s up as much as a rare 4,429% on this trade. But “Penny Trades” aren’t reserved for billionaires like Buffett. Thanks to SEC loophole 30.52, you can play them in your brokerage account. One of these “Penny Trades” shot up 183% in one day… Penny Trades can pay far MORE than stocks… Our readers just saw a 19¢ trade shoot up as much as a rare 5,100%… Here’s the #1 “Penny Trade” for RIGHT NOW. [REVEAL TICKER]
Vanguard Small-Cap Growth ETF (VBK) Data Summary
- Weighted Average Market Cap $37.89B
- Price / Earnings Ratio 8.81
- Price / Book Ratio 5.36
- YTD Daily Total Return 6.83%
- Yield 0.45%
- Expense Ratio 0.07%
- Net Assets $37.89B
- Number of Holdings 677
Jeff Bezos Just Poured $10 Billion Into This…
Not many people know this story… But in 1998, Bezos invested $250,000 of his own money in Google, when the company was just getting started out of a garage in California. When Google went public in 2004, that $250,000 investment translated into 3.3 million shares of Google stock. Nobody knows if Bezos has sold any shares. If he hasn’t, today they’re worth more than $5.6 billion.Jeff Bezos is betting big on a new trend. This time he’s planning to invest $10 billion of his own money in this exciting new trend. That’s 40,000 times more money than what he invested in Google. That’s how big he thinks this could be. [Full Story…]